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This is why the Dow is plunging.Snoopy , runout?
sgtdjones
2018-02-08 16:04:38
This is why the Dow is plunging
Concerns about inflation ...
Stocks had been rising steadily since the election in part because the economy is so strong. Unemployment is historically low, and there are more open jobs than people to fill them.
... and interest rates
When the Fed raises rates, the cost of borrowing money increases. That means companies have to pay more for their loans, which cuts into corporate profits. It also means Americans will pay more for mortgages and loans.
Worries about the bond market
Stocks have also been on a tear because they have been one of the only investments with a decent return. U.S. Treasury bond yields have been so low that many stock dividends are paying better.
Too far, too fast
Stocks have been rising pretty much in a straight line since November 2016, and that's not exactly healthy. Stock market analysts believe the stock market is long overdue for a 5% pullback or even a 10% correction.
sgtdjones
2018-02-08 16:04:57
runout
2018-02-08 16:15:34
In reply to sgtdjones
Bro...usually the markets price in these factors...what you have happening is that the market is overreacting to the very same news that was out there. I believe the markets were spooked because of fears expressed by money managers that there will be a pull back.
I won't worry much. This too shall pass. And if it doesn't, then I will worry about it then. No need to worry now, and worry then.
Runs
2018-02-08 16:17:38
Add concerns about the competence of government and new Fed chairman 
googley
2018-02-08 16:19:16
In reply to Runs
Donald at work...bankruptcy around the corner! 
hubert
2018-02-08 16:23:48
runout
2018-02-08 16:29:55
In reply to googley
Bai you is trouble!!!
birdseye
2018-02-08 16:31:46
birdseye
2018-02-08 16:32:00
In reply to sgtdjones
well when it goes up Trump says it because of his policies and what he is doing – well who takes credit when it goes down --- the long arms of the Kenyon?
runout
2018-02-08 16:32:10
In reply to Runs
Bro, I hear you. But we knew who the prezzie is...no surprise there.
I believe that the Feds have tough task at hand as the market is telling them to stave off the interest rate hike.
A stronger dollar is not what the US wants...it will only increase the trade deficit.
Runs
2018-02-08 16:39:34
In reply to runout
They need to hike interest rate to cool down economy, wages etc are growing too fast
runout
2018-02-08 16:41:01
In reply to Runs
Bro...they were trying to do that for the longest...however it will only compound the problem of the trade deficit...a stronger dollar will not help in this sense.
Runs
2018-02-08 16:45:50
In reply to runout
Dude 45 is spending worse than a tax and spend liberal. Do you think investors have any confidence in him? His best economic adviser Icahn broke from him
googley
2018-02-08 16:58:49
In reply to Runs & Runout
Its rather "Stormy" in the market and other places. Thanks Donald!
runout
2018-02-08 17:04:21
In reply to Runs
Look this inflationary reaction will correct itself, as you will see that the middle class will cut back on spending since their taxes will increase. At the same time corporations will use the excess tax cuts to buy back shares more agressively. They will not spend it on raises. That said, disposable income will be redued, consumption curtailed, and inflation tamed.
runout
2018-02-08 17:04:37
sgtdjones
2018-02-09 12:19:05
Dow falls 350 points as it heads for worst week in 9 years
The stock market is officially in a correction... here's what usually happens next
"The average bull market 'correction' is 13 percent over four months and takes just four months to recover," Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer said in a Jan. 29 report.
But the pain lasts for 22 months on average if the S&P falls at least 20 percent from its record high — past 2,298 — into bear market territory, the report said. The average decline is 30 percent for bear markets.
The last week of stock market drops has taken the S&P 500 into correction territory for the first time in two years.
googley
2018-02-09 13:39:34
SnoopDog
2018-02-09 13:44:14
In reply to sgtdjones
Snoopy ..run out, comments
I have no comment.
